How to Start a Bakery Business from Home

Imagine walking into work and being greeted by the warmth of the ovens, the smell of baked goods, and a friendly hello from your employees. If starting your own bakery business sounds like a dream, look no further! This blog will help you get started.

Bakery products comprise over two percent of the United States GDP, equaling just over $300 billion per year. Sales from retail bakeries are also expected to rise like the bread you want to make, increasing by over five percent yearly according to some estimates. As a growing industry in the United States, now is an amazing time to start a bakery business from home. Are you ready to get your piece of this pie? Let’s get started.

how to start a bakery business

Is Owning a Bakery Right for You?

Before deciding to open a bakery, it is important to understand what skills you will need and what approach may work best. If you lack confidence in any of these, consider taking a class or working with someone who has these skills before opening your first bakery.

Skills You Will Need

  • Strong knowledge of the industry will be key, including what local demand exists for your products.
  • Strong soft skills are also a must for talking to customers and find out what they want from your bakery.
  • Strong math skills are critical for working out what ingredients you will need and for how much you should sell your products in order to make a profit.
  • If you intend to hire employees, people management skills will also be important.
  • Marketing skills to get people into the bakery, or the capital to hire someone to do it for you.
  • And finally, it will be difficult to open a successful bakery without talent in the art and science of baking

What Type of Bakery Business Should You Start?

Now that you know you want to start a bakery, and you have all the necessary skills to do so, it is time to decide what kind of bakery business you should start. There are several to choose from.


Some of the best bakeries do not require a storefront to be successful in the digital age. You can start online with a killer website, pictures of your work, and an e-commerce platform your customers can use to place an order – all from home. how to start a bakery business

Counter Service

This may be the style of bakery that comes to mind most readily for you. All you need is a small commercial space for customers to walk in and pick up the baked goods they ordered from you, either online, by phone, or in-store.

Specialty Service

If you plan to offer specialty goods, such as vegan or gluten-free options, a specialty service is most likely a great bakery plan for you. Whether you run your business from your home or rent a space, it is ultimately up to what you want your business model to look like.

Sit Down Bakery

The ambiance and communal style sit down and dine in option is something more owners are attempting to capitalize on.

Once you decide which style of bakery you would like to create, it is time to create your business plan.

Creating Your Bakery Business Plan

There are several steps within this category, all of which will help you create a solid foundation for creating your business.

Identify Your Bakery’s Business’ Unique Selling Points

What sets your bakery apart from others like it? Are you offering any special products? Are you donating proceeds? Do you have a mission? By fully planning your executive summary and company overview first, you will have a framework for structuring the rest of your business that will serve you well.

Look at Who Your Industry Competitors Are

This step is all about analyzing the market, understanding who your competitors are in order to create a niche, and develop the best marketing strategy for your area. See what they’re doing well and what they need to improve on and offer a bakery business that caters to those holes.

Understand Your Customers

What are your customers looking for from your bakery? Can you cater to those desires? By researching and understanding the needs of your future customers, you will be able to tailor your business offerings to match and increase your chances of success.

Get Involved with Local Business Communities and Discussion Groups

The best way to understand your space is to get involved in it, even if your business has not been created yet. The American Society of Baking offers many great online resources for getting started, and several online forums can be found across the web.

Financials and Legal Aspects

Finally, you will want to be sure you address all the legal and financial planning of your business. These will be the most critical final aspect before opening your business, to ensure you are operating legally and productively. Depending on the kind of bakery you chose in step two, you will need to

  • Create a management plan and ownership structure
  • Acquire loans or startup capital from a funder
  • Register your business
  • Lease a space
  • Obtain all the permits, licenses, and equipment

Work With Indiana Sugars

When you are ready to start your bakery business, Indiana Sugars will be here to provide you with high-quality bulk ingredients at the affordable price you need. Contact our team with any questions you may have and let us know how we can help you. We look forward to hearing from you!